Price hikes loom as tariffs hit

U.S. consumers are bracing for the impact of new tariffs imposed by President Donald Trump, which include a 25% duty on various products from Mexico and Canada. GlobalData managing director Neil Saunders said that businesses will inevitably have to lift product costs, adding: “There’s no way that retailers can afford to absorb all of this cost increase themselves and keep prices the same for the customer.” The National Retail Federation (NRF) estimates that American consumers could lose $46bn-$78bn in spending power annually due to the new levies. Meanwhile, the Toy Association is advocating for exemptions for toys from the new, increased 20% tariff on goods from China, warning that raised prices could alienate consumers already frustrated by rising costs. “10% – it’s something we can somehow live with. 20% is a different ball game”, said Yaron Barlev, chief operating officer of Clixo, a Brooklyn-based maker of magnetic building toys.